Markets in a week.. Gold prices hit record highs, and oil risks rise
An ounce of gold hit an unprecedented high in Friday trade today and is on track for a fourth straight week of gains, while oil prices rose as a result of tensions in the Middle East. The yellow metal rose, supported by central bank purchases amid geopolitical tensions, while strong U.S. economic data failed to dampen demand for it.
Spot gold was up 0.5% at $2,384.34 an ounce by 03:45 GMT. The metal hit an unprecedented high of 2395.29 in the previous session. U.S. futures rose 1.2% to $2,401.80, according to Reuters data. In this regard, ACY Securities analyst Luca Santos says, “World wars definitely prompt central banks to buy gold. Historically, this has always happened because gold is a safe haven. “
Despite recent inflation data and last week's strong U.S. jobs report raising more questions about the likelihood of interest rate cuts this year, gold is heading for its fourth straight weekly gain and is up more than 15% since the start. year. High interest rates undermine the appeal of holding non-income producing gold.
As for other precious metals, silver rose 1% to $28.75 in spot transactions, marking its highest level since February 2021. Platinum was up 0.7% at $986.65, while palladium was up 0.1% at $1,049.83.
Oil rose on Friday but lost for the rest of the week
Oil prices edged higher on Friday in light of rising tensions in the Middle East, raising the possibility of supply disruptions from the oil-producing region.However, prices were set for a weekly loss amid expectations of a cut in US interest rates. This year.
By 04:20 GMT, Brent crude futures were up 51 cents, or 0.57%, at $90.25, while US West Texas Intermediate crude futures were up 61 cents, or 0.72%, at $85.63. The gains erased some of the losses recorded in the previous session, which was dominated by worries about US inflation, which dampened hopes for a rate cut in June.
ANZ Research said in a note today that “geopolitical risks remain high” as oil prices rose, supported by improving economic conditions and supply cuts adopted by the Organization of the Petroleum Exporting Countries and its partners within the framework of the OPEC+ group. . Oil prices are still posting weekly declines, with Brent and West Texas Intermediate down more than 1%, according to data at 04:20 GMT.
Leading stocks support European equities amid hopes for a rate cut
On another line, European stocks rose on Friday, supported by gains in leading stocks, while investors remained optimistic after the European Central Bank hinted that it will start cutting interest rates in June. The European Stoxx 600 index rose 0.9%, heading for a weekly gain of 0.4%, while the leading stock index rose 1.1%.
The basic resource index advanced 2%, following a slight rise in base metal prices. Shares in the region's major economies, such as Germany, France, Spain and Italy, rose between 0.5% and 1%. The Financial Times 100 index rose 0.8% as economic output in the United Kingdom grew for the second month in a row in February and the January reading was revised upwards.
Chip stocks are reviving Japan's Nikkei index
In Tokyo, Japan's Nikkei index ended higher on Friday, as chip-related shares tracked gains in tech stocks in the US overnight, while shares of Uniqlo's parent company Fast Retailing eased the slide. The Nikkei index rose 0.21% to close at 39,523.55 points, marking a weekly gain of 1.41%. The broader TOPICS index advanced 0.46% to 2,759.64 points and rose 2.11% on the week.
U.S. stocks ended higher on Thursday, led by gains in technology-related stocks as new economic data revived hopes that inflation will continue to slow, a day after posting a strong reading. However, Treasuries continued to rise as stronger-than-expected consumer price index data raised doubts about the Federal Reserve's ability to cut interest rates this year.
